First Investors Consolidated Corporation To Be Acquired by Canadian Insurance Firm

NEW YORK, Sept. 21 /PRNewswire/ -- First Investors Consolidated Corporation (FICC) – a privately held company focused on the financial needs of Americans – and Toronto-based Foresters™, a life insurance provider with a similar commitment to the well-being of families, today announced that they have signed a definitive agreement in which Foresters will acquire a 100% ownership position in FICC. The acquisition includes FICC's registered broker-dealer, its registered investment advisory firm, transfer agent and life insurance operations. Because neither organization is publicly held, the terms of the transaction are not being disclosed at this time.

FICC, or "First Investors," is an 80 year-old financial services company with US$6.3 billion in assets under management, providing a broad range of investment and life insurance products and services through its nationwide network of more than 700 sales professionals and 400 employees operating out of 46 offices in 26 states.  Founded in 1874 as a fraternal benefit society, Foresters is a member-based insurance organization with assets of C$6.2 billion and surplus of C$1.4 billion and more than 675,000 members in Canada, the United States and United Kingdom.  Foresters has operated in the United States for more than 100 years.

In announcing the agreement, First Investors Chairman and CEO Kathryn S. Head said, "This transaction represents the culmination of a thorough search for a business partner with a capital structure and financial resources that will position First Investors for significant growth. We found an excellent match in Foresters, in terms of operating philosophy, target markets, products and capabilities, and a demonstrated dedication to meeting the needs of its customers."  

According to Foresters President and CEO George Mohacsi, "This acquisition will further strengthen Foresters' market position in the United States and provide our organization with entry into the U.S. asset management market, through FICC's 27 retail mutual funds and 12 funds in its life insurance portfolio.  We will also gain a significant national distribution network that targets the same demographic market as Foresters. The combination will allow Foresters to offer a broader array of financial products in the U.S., grow our membership, and place us in a stronger position to fulfill our purpose of enriching the lives of our members, their families and their communities."

Upon completion of the transaction, FICC will continue to operate with its current management and staff as a standalone entity within Foresters' U.S. Division, and will market its products and services under the First Investors brand.  Chris Pinkerton, President of Foresters' U.S. Division, will assume responsibility as FICC's President and CEO, in addition to his current responsibilities.

"This acquisition is a win-win proposition for both organizations, which further reinforces Foresters' strong commitment to its current operations and distribution strategy in the United States, Canada and the U.K.," Mr. Pinkerton said. He also noted that, when the transaction is completed, FICC's registered representatives who are life licensed will have the opportunity to market Foresters' life insurance products, in addition to the current range of FICC financial products.

The agreement, which is subject to various conditions, including regulatory approvals in the United States and Canada, and FICC fund shareholder approval, is expected to close by December 31, 2010. Berkshire Capital and Macquarie Capital are acting as financial advisors and Kramer Levin Naftalis & Frankel is legal counsel to First Investors for this transaction.

About First Investors Consolidated Corporation

First Investors Consolidated Corporation (FICC), together with its subsidiaries, is a privately-held diversified financial services organization that provides investment management services to the broad middle market as the investment advisor to, and the distributor for, the First Investors family of mutual funds and life insurance products.  The First Investors family of companies includes: First Investors Corporation (FIC), a registered broker-dealer; First Investors Management Company, Inc. (FIMCO), a registered investment advisor responsible for portfolio management of the First Investors funds; Administrative Data Management Corporation (ADM), a transfer agent; and First Investors Life Insurance Company (FIL).

Since its founding in 1930, First Investors has followed the guiding principle of personal service to connect "Main Street to Wall Street," by addressing the financial needs of middle market investors. With corporate headquarters in New York City and administrative offices and a data center in Edison, New Jersey, the company had assets under management (AUM) of US $6.6 billion on behalf of 500,000 accounts as of September 3, 2010. The company's web address is www.firstinvestors.com

About Foresters

Founded in 1874 as a fraternal benefit society, Foresters™ champions the well-being of families through quality life insurance, unique member benefits and inspiring community activities. Foresters has assets of $6.2 billion with liabilities of $4.8 billion resulting in a surplus of $1.4 billion (all figures in Canadian dollars as of December 31, 2009) and maintains an "A" (Excellent) rating by A.M. Best*.  Foresters shares its financial strength with more than 675,000 members in Canada, the United States and the United Kingdom. Foresters Equity Services, Inc.(1.), a wholly owned subsidiary of Foresters, offers investment products in the U.S. Unity Life of Canada(2.), a wholly owned subsidiary of Foresters, represents Foresters in Canada.  For more information, please visit www.foresters.com.

Foresters™ is a trademark of The Independent Order of Foresters, a fraternal benefit society, Toronto, Canada M3C 1T9.

*An "A" (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. In assigning Foresters' rating, A.M. Best stated that Foresters' rating outlook is "stable," which means it is unlikely to change in the near future, assuming Foresters' financial strength is maintained and operations grow. A.M. Best assigns ratings from A++ to F, A++ being superior ratings and A and A- being excellent ratings.

(1.) Investments offered through Foresters Equity Services, Inc. Member FINRA, SIPC, 6640 Lusk Blvd., Suite A-202, San Diego, CA 92121 T. 858 550 4844.

(2.) Unity Life of Canada, a Foresters company, is a wholly owned subsidiary of The Independent Order of Foresters.

SOURCE First Investors Consolidated Corporation